RE:RE:Interesting statement made in HEXO's financialsStarkicker, it is difficult to decipher the filings as when searching HEXO documents under Medipharm, very little appears. Searching under onerous revealed a bit more.
The court award included interest, so it would appear the interest accrued was $575,000. Add that to the Medipharm $9.8 million court award and it is $10.375 million
Adding the 2 HEXO reported totals of $8,530 and $1.846 equals $10.376 million
Clear as mud lol
HEXO's SEC filings including this info have not yet been publicly reported, but maybe they will provide more clues
HEXO may have a settlement liabilities account they are transfering funds into for the eventualpayment to Labs, but someone with accounting chops would have to verify that
HEXO SEDAR Filings:
“On July 25, 2022, the Company received a judgment from the court awarding the claim to the counterparty. In response, management has initiated an appeal from the decision and, as a result, the onerous contract liability remains as at July 31, 2022.”
Current Liabilities
The following activities and events resulted in the net decrease of current liabilities during the three months ended October 31, 2022:
A transfer of $8,530 owed to a cannabis supplier into settlement liabilities and onerous contracts as the result of a legal judgement;
“MediPharm Onerous contract During the period, the Company’s onerous contract provision related to a fixed price supply agreement for the supply of certain cannabis products was adjusted to the court settlement amount of $1,846, inclusive of $575 of accrued interest. Management has initiated an appeal against the court’s decision and is simultaneously pursuing a settlement with the counterparty.”